Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (18743)	3/18/2009 9:29:26 AM
From: Real Man	Read Replies (2) \| Respond to of 71416

We will need to go through painful restructuring process, which will last years. Hopefully, the plan to stop the ongoing financial crisis is followed by real (promised) action to bring back manufacturing. FWIW, I do not expect the USD to drop to zero - and yes, monetization during the backdrop of debt destruction can be positive and not hyperinflationary. As long as we stick through the restructuring process to bring the economy in balance, we'll be OK. So far few steps have been taken in that direction, as think tank economists are focused on solving the immediate credit fiasco, which is proving to be difficult. Unlike the gold bugs claim, our external debt is NOT that high in comparison to GDP (about $3 Trillion), so we are not at risk of severe currency meltdown like in Iceland. However, rates can have an effect, and if the World starts to recover before us (I expect that), the dollar will slide to new lows. I don't expect the dollar index to go below 50. We will have to accept the age of austerity and lower standard of living. The real bottom will come as the restructuring process gets well under way.